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IN RE SCHICK

Bankruptcy Nos. 96 B 42902(SMB), 96 B 43969(SMB) and 96 B 46282(SMB), Adversary No. 98-8182A.

223 B.R. 661 (1998)

In re David SCHICK, Venture Mortgage Corp., and A & D Trading Group, L.L.C., Debtors. Aurora CASSIRER, Chapter 11 Trustee for the Estate of David Schick, Debtor, Plaintiff, v. STERLING NATIONAL BANK & TRUST COMPANY OF NEW YORK, Defendant. STERLING NATIONAL BANK & TRUST COMPANY OF NEW YORK, Third-Party Plaintiff, v. THE MERCHANTS BANK OF NEW YORK and Israel Discount Bank of New York, Third-Party Defendants.

United States Bankruptcy Court, S.D. New York.

August 24, 1998.

Attorney(s) appearing for the Case

Parker Chapin Flattau & Klimpl, LLP, New York City (Joel Lewittes, of Counsel), for Plaintiff.

Kaye, Scholer, Fierman, Hays & Handler, LLP, New York City (Herbert S. Edelman, of Counsel), for Defendant and Third-Party Plaintiff.

Zeichner Ellman & Krause, New York City (Stuart A. Krause, of Counsel), for Merchants Bank of New York.

Tenzer, Greenblatt LLP, New York City (Lawrence M. Rosenstock, of Counsel), for Israel Discount Bank of New York.

MEMORANDUM DECISION DENYING MOTIONS TO DISMISS THE COMPLAINT AND THE THIRD-PARTY COMPLAINT

STUART M. BERNSTEIN, Bankruptcy Judge.

The trustee commenced this adversary proceeding to avoid and recover four allegedly preferential loan repayments from the debtor, David Schick, to the defendant, Sterling National Bank ("Sterling"). Sterling answered, and commenced a third-party action seeking indemnification from Merchants Bank of New York ("Merchants...

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